LONDON, U.K. – European shares turn higher despite the increasing global concerns over the spreading of deadly coronavirus in China and other neighboring countries.
European stock market traded modestly higher on Wednesday to continue the rebounds it started in the previous session amid concerns of the coronavirus outbreak in Asia.
From its early declines, the pan-European Stoxx 600 index recovered to trade higher by 0.7%. The 1.4% advance in tech and auto stocks largely boosted the gains in the index, as well as all other sectors going up to trade in positive territory.
Market players have continued to weigh in on the possible economic impact of the coronavirus outbreak in China. As of Tuesday night, the National Health Commission of China announced that there are already 24,324 recorded cases of the virus, and 490 people were confirmed dead in the country.
Meanwhile, based on a report from a TV media outlet in China, a Zhejiang University research team had found a drug that can effectively treat people infected by the deadly virus.
With the recent headlines, Asian stocks have also recovered most of its previous losses due to the virus outbreak. On Wednesday, shares in Asia also advanced during the afternoon session. The gains in the region were led by shares in mainland China, which recovered from its 7% plunge on Monday.
On the other hand, market players are expected to reflect on the State of the Union address by US President Donald Trump going forward. The president boasted jobs record in his reign and cautioned against policy proposals from the Democrats.
Elsewhere, oil prices increased on Wednesday. The advance was largely driven by OPEC and non-OPEC oil producers, including Russian producers, deliberating more output cuts to prevent the possible dip in the global oil demand due to the virus outbreak in China. The committee is scheduled for another meeting on Wednesday.
Back on the Euro stock market on Wednesday, the biggest gainer in the Stoxx 600 index was the GN Store Nord. The gain came after the Danish hearing aid company released a 6.9% increase in their earnings for the fourth quarter.
Meanwhile, the Imperial Brands, which is the European benchmark, dropped around 8.7% following its profit warning report for the first quarter.
BNP Paribas has also released its earnings report today, which showed a better-than-expected net profit of 1.84 billion euros for the fourth quarter. However, the lender has cut back on its predicted profitability, which dragged its shares 0.9% lower early in the session.
Several earning reports are scheduled for release on Wednesday as well, including that of Infineon, Danske Bank, ABB, Siemens, Vodafone, and Novonordisk.